- Scott Peters
- 07 Feb, 2025
- New York City
Amazon.com Inc. dropped 2.9% to $231.98 after the company posted fourth-quarter sales, and sales growth outlook disappointed some investors.
Net sales increased to $187.79 billion from $169.96 billion, net income surged to $20.0 billion from $10.6 billion, and earnings per diluted share rose to $1.86 from $1.00 a year ago.
For the first quarter of 2025, the company estimated net sales growth of 5% to 9% to a range of $151.0 billion to $155.5 billion.
Operating income is expected to be between $14.0 billion and $18.0 billion, compared to $15.3 billion in the first quarter last year.
Amazon said it plans to boost capital expenditures to $100 billion in 2025, compared to $83 billion last year, as it continues to make investments in artificial intelligence.
The company faces increased competition from rivals, including OpenAI and Google.
Hilton Worldwide Holdings Inc. gained 0.04% to $270.50 after the hotel operator reported fourth quarter and record full-year results.
Quarterly revenue increased to $642 million from $601 million, net income surged to $505 million from $150 million, and earnings per diluted share rose to $2.06 from 57 cents a year ago.
Hilton repurchased 3.1 million shares of its common stock during the fourth quarter, bringing the total capital return, including dividends, to $781 million for the quarter and $3.0 billion for the full year.
For the first quarter of 2025, the company expects a 2.5% to 3.5% growth in revenue per available room, compared to the same period last year.
Hilton also estimated net income of $373 million to $388 million and earnings per share between $1.52 and $1.58 in the first quarter.
For the year 2025, the company expects net unit growth of 6% to 7%.
The company projects a full-year capital return of approximately $3.3 billion.
Expedia Inc. surged 10.6% to $190.80 after the travel technology company reported a 13% increase in gross bookings during the fourth quarter ending in December.
Revenue increased 10% to $3.18 billion from $2.89 billion, net income climbed 124% to $299 million from $132 million, and earnings per diluted share jumped 139% to $2.20 from 92 cents a year ago.
The company proposed a first quarter dividend of 40 cents per share, payable on March 27 to holders of record on March 6.
Expedia expects 2025 gross bookings and revenue growth of 4% to 6%.
Travel demand has remained steady in Asia Pacific, aided by the lifting of some visa restrictions in the region, as well as in Europe.
Verisign Inc. dropped 0.08% to $220 after the provider of internet infrastructure and domain name registry services reported a 3.9% sales growth in the fourth quarter, but profit declined.
Revenue jumped to $395.4 million from $380.4 million, net income declined to $191.5 million from $265.1 million, and earnings per diluted share fell to $2.0 from $2.60 a year ago.
Verisign ended the fourth quarter with 169.0 million .com and .net domain name registrations in the domain name base, a 2.1% decrease from a year ago.
In the fourth quarter, the company processed 9.5 million new domain name registrations for .com and .net, as compared to 9.0 million for the same period in 2023.
Verisign repurchased 6.6 million shares of its common stock for $1.21 billion during the full year of 2024.
As of December 31, there was $1.02 billion remaining for future share repurchases under the company’s program, which has no expiration date.
- Barry Adams
- 07 Feb, 2025
- New York City
Wall Street indexes lacked direction in early trading as investors reviewed the nonfarm payrolls update.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2% after the payrolls growth slowed in January from the previous month.
Nonfarm payrolls increase slowed to 143,000 in January from the upwardly revised 307,000 in December.
The jobless rate edged down 4.0%, and wages inched up 0.5% from the previous month and increased the annual growth to 4.1%, according to the latest data released by the Bureau of Labor Statistics.
The U.S. economy added an average of 166,000 jobs a month, totaling 1.99 million in 2024, slower than the average monthly increase of 225,000, totaling 2.7 million in 2022.
Despite the slowdown in job growth, policymakers are likely to focus on the wage increase, which is far higher and inconsistent with the Fed's target rate of 2%.
The change in total nonfarm payroll employment for November was revised up by 49,000 to 261,000, and for December was revised up by 51,000 to 307,000.
With these revisions, employment in November and December combined is 100,000 higher than previously reported.
U.S. Stock Movers
Amazon.com Inc decreased 3% to $231.77 after the e-commerce company reported better-than-expected revenue and earnings in the latest quarter.
However, the company's first quarter revenue growth outlook between 5% and 9%, the weakest on record, overshadowed quarterly results.
Pinterest Inc. jumped 21% to $40.75, and the online community platform operator reported a sharp increase in net income in the fourth quarter after the user base jumped.
Hershey Company increased 1% to $154.0 after the chocolate confectionery maker reported better-than-expected adjusted earnings and revenue in the fourth quarter.
- Barry Adams
- 07 Feb, 2025
- New York City
Wall Street indexes lacked direction in early trading as investors reviewed the nonfarm payrolls update.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2% after the payrolls growth slowed in January from the previous month.
Nonfarm payrolls increase slowed to 143,000 in January from the upwardly revised 307,000 in December.
The jobless rate edged down 4.0%, and wages inched up 0.5% from the previous month and increased the annual growth to 4.1%, according to the latest data released by the Bureau of Labor Statistics.
The U.S. economy added an average of 166,000 a month, totaling 1.99 million in 2024, slower than the average monthly increase of 225,000, totaling 2.7 million in 2022.
Despite the slowdown in job growth, policymakers are likely to focus on the wage increase, which is far higher than consistent with the Fed's target rate of 2%.
The change in total nonfarm payroll employment for November was revised up by 49,000 to 261,000, and for December was revised up by 51,000 to 307,000.
With these revisions, employment in November and December combined is 100,000 higher than previously reported.
U.S. Stock Movers
Amazon.com Inc decreased 3% to $231.77 after the e-commerce company reported better-than-expected revenue and earnings in the latest quarter.
However, the company's first quarter revenue growth outlook between 5% and 9%, the weakest on record, overshadowed quarterly results.
Pinterest Inc. jumped 21% to $40.75, and the online community platform operator reported a sharp increase in net income in the fourth quarter after the user base jumped.
Hershey Company increased 1% to $154.0 after the chocolate confectionery maker reported better-than-expected adjusted earnings and revenue in the fourth quarter.
- Inga Muller
- 07 Feb, 2025
- Frankfurt
European markets extended their weekly advance a day after the Bank of England lowered its key lending rate by 25 basis points as widely expected.
Germany's international trade shrank in 2024 amid weak domestic demand and rising global competition.
The DAX index increased by 0.08% to 21,919.94, the CAC-40 index declined 0.05% to 8,003.78, and the FTSE 100 index dropped by 0.14% to 8,714.65.
The yield on 10-year German bonds inched lower to 2.36%, French bonds decreased to 3.08%, the UK gilts moved down to 4.47%, and Italian bonds edged lower to 3.43%.
Europe Stock Movers
Iveco Group NV soared 17% to €13.56, and the Italian truck and bus maker said it is considering spinning off its defense business.
Henkel AG advanced 1.8% to €84.96 after the German consumer products company said it plans to sell its retailer brand business to an affiliate of First Quality Enterprises.
L'Oreal SA decreased 4% to €337.90 after the French cosmetics company reported weaker-than-expected fourth quarter sales.
Sanofi SA declined 0.4% to €103.68, and the French healthcare company announced a €2 billion stock buyback plan.
Danske Bank AS soared 7.3% to DKK 234.30 after the Danish bank reported strong fourth-quarter financial results.
Legal & General Group advanced 3.5% to 247.88 pence after the British life insurance company agreed to sell its U.S. insurance entity for $2.3 billion to Japan's Meiji Yasuda.
The U.S. entity comprises protection and pension risk transfer businesses.
Ashmore Group plc decreased 0.4% to 168.10 pence after the emerging markets-focused asset manager reported a 33% decrease in half-year profit.
Recent Earnings Movers
Maersk A/S gained 6.3% to 11,560 krone after the Danish shipping and logistics company estimated a 4% growth for fiscal year 2025.
Revenue in 2024 increased 8.6% to $55.48 billion from $51.06 billion, profit surged to $6.23 billion from $3.82 billion, and earnings per diluted share rose to $387 from $227 a year ago.
Revenue in the fourth quarter jumped to $14.59 billion from $11.74 billion, profit climbed to $2.11 billion from a net loss of $456 million, and earnings per diluted share rose to $132 from a loss of $27 a year earlier.
Maersk bought back class A and class B shares worth DKK 2.8 billion in the quarter, and the company launched a new stock repurchase plan worth DKK 14.4 billion for a period of twelve months.
The first phase of the stock buyback worth DKK 7.2 billion will run between February 7 and August 6.
The company proposed a dividend of DKK 1.120 per share, payable on March 21.
The shipping company's financial disclosure formats are one of the most shareholder-unfriendly of 4,000 companies reviewed by ticker.com.
Carlsberg A/S gained 1.7% to 854.00 krone after the Danish brewer reported a 1.9% increase in revenue for fiscal year 2024, despite a weakness in the China market.
Revenue increased to DKK 75.01 billion from DKK 73.58 billion, profit surged to DKK 10.26 billion from a net loss of DKK 39.78 billion, and earnings per share rose to DKK 68.7 compared to a loss of DKK 299.7 a year ago.
In January, the company acquired Britvic plc for £3.3 billion, doubling its soft drinks exposure.
Carlsberg entered into a bottling agreement with PepsiCo for Kazakhstan and Kyrgyzstan as of the first quarter of 2026, and the company gained full control of the businesses in India and Nepal.
The company sold its Russian business, Baltika Breweries, for 34 billion rubles.
For fiscal year 2025, Carlsberg estimated organic operating profit growth of 1% to 5%, reflecting uncertainty in both Europe and Asia and the loss of the San Miguel brand.
The company’s board proposed a dividend of DKK 27.0 per share, at the same 2023 rate, for a total of DKK 3.6 billion, which equals a payout ratio of 49%.
TotalEnergies traded up 0.6% to €58.98 after the French oil and gas company reported lower sales for its fourth quarter ending in December, impacted by weaker refining margins and lower crude prices.
Revenue declined to $52.51 billion from $59.24 billion, net income dropped to $4.02 billion from $5.04 billion, and earnings per diluted share fell to $1.70 from $2.09 a year ago.
For fiscal year 2025, the company estimated a 5% increase in energy production, based on hydrocarbon and electricity production growth.
TotalEnergies proposed a 7% increase in the 2024 dividend to €3.22 per share and confirmed $2 billion of share buybacks per quarter in 2025.
The company paid dividends of approximately $7.72 billion in 2024, compared to $7.52 billion a year ago.
AstraZeneca Plc. gained 0.4% to 11,838 pence after the British-Swedish pharmaceutical and biotechnology company posted higher-than-expected earnings for the fourth quarter ending in December.
Revenue increased to $14.89 billion from $12.02 billion, profit jumped to $1.5 billion from $959 million, and earnings per diluted share rose to 96 cents from 62 cents a year ago.
The company’s best-selling drugs are Tagrisso for lung cancer, Farxiga for chronic kidney disease, and Ultomiris for an atypical hemolytic-uremic syndrome.
AstraZeneca will pay dividends on March 24 and September 8 to shareholders on record as of February 21 and August 8, respectively.
Société Générale surged 2.4% to €35.78 after the French banking group reported better-than-expected earnings for the fourth quarter.
Net income increased to €1.27 billion from €612 million a year ago.
For the full year 2024, earnings per share rose to €4.38 from €2.17 a year ago.
Looking ahead to fiscal 2025, the bank estimated a 3% increase in revenue to €26.8 billion.
The company’s board proposed a cash dividend of €1.09 per share, payable on May 28.
Société Générale will also distribute €2.18 per share, equivalent to €1.74 billion, of which €872 million would be in a share buyback.
ArcelorMittal gained 1.05% to €27.90 after the Luxembourg-based steel manufacturer said its net loss shrank in the fourth quarter ending in December.
Sales increased to $14.71 billion from $14.55 billion, net loss shrank to $390 million from a loss of $2.97 billion, and basic loss per share declined to 51 cents from a loss of $3.57 a year ago.
Looking to fiscal year 2025, the company expects higher demand, and with low inventory levels, especially in Europe, restocking activity is likely to supplement demand improvements.
Ashmore Group Plc. dropped 0.9% to 170 pence after the British investment management company posted weak results for the six months ended in December.
Adjusted net revenue declined 14% to £79.9 million from £93.4 million, profit before taxes slumped 33% to £49.9 million from £74.5 million, and earnings per diluted share fell 37% to 5.4 pence from 8.5 pence, compared to the first half of 2024.
The company left its dividend unchanged at 4.8 pence per share.
- Inga Muller
- 07 Feb, 2025
- Frankfurt
European markets extended their weekly advance a day after the Bank of England lowered its key lending rate by 25 basis points as widely expected.
Germany's international trade shrank in 2024 amid weak domestic demand and rising global competition.
The DAX index increased by 0.08% to 21,919.94, the CAC-40 index declined 0.05% to 8,003.78, and the FTSE 100 index dropped by 0.14% to 8,714.65.
The yield on 10-year German bonds inched lower to 2.36%, French bonds decreased to 3.08%, the UK gilts moved down to 4.47%, and Italian bonds edged lower to 3.43%.
Europe Stock Movers
Iveco Group NV soared 17% to €13.56, and the Italian truck and bus maker said it is considering spinning off its defense business.
Henkel AG advanced 1.8% to €84.96 after the German consumer products company said it plans to sell its retailer brand business to an affiliate of First Quality Enterprises.
L'Oreal SA decreased 4% to €337.90 after the French cosmetics company reported weaker-than-expected fourth quarter sales.
Sanofi SA declined 0.4% to €103.68, and the French healthcare company announced a €2 billion stock buyback plan.
Danske Bank AS soared 7.3% to DKK 234.30 after the Danish bank reported strong fourth-quarter financial results.
Legal & General Group advanced 3.5% to 247.88 pence after the British life insurance company agreed to sell its U.S. insurance entity for $2.3 billion to Japan's Meiji Yasuda.
The U.S. entity comprises protection and pension risk transfer businesses.
Ashmore Group plc decreased 0.4% to 168.10 pence after the emerging markets-focused asset manager reported a 33% decrease in half-year profit.
Recent Earnings Movers
Maersk A/S gained 6.3% to 11,560 krone after the Danish shipping and logistics company estimated a 4% growth for fiscal year 2025.
Revenue in 2024 increased 8.6% to $55.48 billion from $51.06 billion, profit surged to $6.23 billion from $3.82 billion, and earnings per diluted share rose to $387 from $227 a year ago.
Revenue in the fourth quarter jumped to $14.59 billion from $11.74 billion, profit climbed to $2.11 billion from a net loss of $456 million, and earnings per diluted share rose to $132 from a loss of $27 a year earlier.
Maersk bought back class A and class B shares worth DKK 2.8 billion in the quarter, and the company launched a new stock repurchase plan worth DKK 14.4 billion for a period of twelve months.
The first phase of the stock buyback worth DKK 7.2 billion will run between February 7 and August 6.
The company proposed a dividend of DKK 1.120 per share, payable on March 21.
The shipping company's financial disclosure formats are one of the most shareholder-unfriendly of 4,000 companies reviewed by ticker.com.
Carlsberg A/S gained 1.7% to 854.00 krone after the Danish brewer reported a 1.9% increase in revenue for fiscal year 2024, despite a weakness in the China market.
Revenue increased to DKK 75.01 billion from DKK 73.58 billion, profit surged to DKK 10.26 billion from a net loss of DKK 39.78, and earnings per share rose to DKK 68.7 compared to a loss of DKK 299.7 a year ago.
In January, the company acquired Britvic plc for £3.3 billion, doubling its soft drinks exposure.
Carlsberg entered into a bottling agreement with PepsiCo for Kazakhstan and Kyrgyzstan as of the first quarter of 2026, and the company gained full control of the businesses in India and Nepal.
The company sold its Russian business, Baltika Breweries, for 34 billion rubles.
For fiscal year 2025, Carlsberg estimated organic operating profit growth of 1% to 5%, reflecting uncertainty in both Europe and Asia and the loss of the San Miguel brand.
The company’s board proposed a dividend of DKK 27.0 per share, at the same 2023 rate, for a total of DKK 3.6 billion, which equals a payout ratio of 49%.
TotalEnergies traded up 0.6% to €58.98 after the French oil and gas company reported lower sales for its fourth quarter ending in December, impacted by weaker refining margins and lower crude prices.
Revenue declined to $52.51 billion from $59.24 billion, net income dropped to $4.02 billion from $5.04 billion, and earnings per diluted share fell to $1.70 from $2.09 a year ago.
For fiscal year 2025, the company estimated a 5% increase in energy production, based on hydrocarbon and electricity production growth.
TotalEnergies proposed a 7% increase in the 2024 dividend to €3.22 per share and confirmed $2 billion of share buybacks per quarter in 2025.
The company paid dividends of approximately $7.72 billion in 2024, compared to $7.52 billion a year ago.
AstraZeneca Plc. gained 0.4% to 11,838 pence after the British-Swedish pharmaceutical and biotechnology company posted higher-than-expected earnings for the fourth quarter ending in December.
Revenue increased to $14.89 billion from $12.02 billion, profit jumped to $1.5 billion from $959 million, and earnings per diluted share rose to 96 cents from 62 cents a year ago.
The company’s best-selling drugs are Tagrisso for lung cancer, Farxiga for chronic kidney disease, and Ultomiris for an atypical hemolytic-uremic syndrome.
AstraZeneca will pay dividends on March 24 and September 8 to shareholders on record as of February 21 and August 8, respectively.
Société Générale surged 2.4% to €35.78 after the French banking group reported better-than-expected earnings for the fourth quarter.
Net income increased to €1.27 billion from €612 million a year ago.
For the full year 2024, earnings per share rose to €4.38 from €2.17 a year ago.
Looking ahead to fiscal 2025, the bank estimated a 3% increase in revenue to €26.8 billion.
The company’s board proposed a cash dividend of €1.09 per share, payable on May 28.
Société Générale will also distribute €2.18 per share, equivalent to €1.74 billion, of which €872 million would be in a share buyback.
ArcelorMittal gained 1.05% to €27.90 after the Luxembourg-based steel manufacturer said its net loss shrank in the fourth quarter ending in December.
Sales increased to $14.71 billion from $14.55 billion, net loss shrank to $390 million from a loss of $2.97 billion, and basic loss per share declined to 51 cents from a loss of $3.57 a year ago.
Looking to fiscal year 2025, the company expects higher demand, and with low inventory levels, especially in Europe, restocking activity is likely to supplement demand improvements.
Ashmore Group Plc. dropped 0.9% to 170 pence after the British investment management company posted weak results for the six months ended in December.
Adjusted net revenue declined 14% to £79.9 million from £93.4 million, profit before taxes slumped 33% to £49.9 million from £74.5 million, and earnings per diluted share fell 37% to £5.4 from £8.5, compared to the first half of 2024.
The company left its dividend unchanged at 4.8 pence per share.
- Bridgette Randall
- 07 Feb, 2025
- London
European markets meandered after trading near record highs in the previous session, and investors kept their focus on corporate results.
Benchmark indexes in Paris, Frankfurt, Milan, and London flatlined a day after the Bank of England lowered its key lending rate.
The Bank of England trimmed its bank rate by 25 basis points to 4.5%, and policymakers struggled to balance concerns to promote economic growth and stubborn services inflation.
Germany's industrial output declined monthly 2.4% in December, rebounding from a downwardly revised decline of 1.3% in the previous month.
On an annual basis, industrial production contracted 3.1%, accelerating from the 2.8% fall in the previous month, according to the monthly update released by Destatis.
In 2024, Germany's goods exports decreased 1% to €1.6 trillion, and imports fell 2.8% to €1.3 trillion, resulting in a goods trade surplus of €241.2 billion.
After a week of trading, the DAX index increased 2.6%, the CAC-40 advanced 2.4%, and the FTSE 100 index edged up 0.3%.
Europe Indexes and Yields
The DAX index increased by 0.08% to 21,919.94, the CAC-40 index declined 0.05% to 8,003.78, and the FTSE 100 index dropped by 0.14% to 8,714.65.
The yield on 10-year German bonds inched lower to 2.36%, French bonds decreased to 3.08%, the UK gilts moved down to 4.47%, and Italian bonds edged lower to 3.43%.
The euro increased to $1.04; the British pound was higher at $1.24; and the U.S. dollar was higher and traded at 90.62 Swiss cents.
Brent crude increased $0.65 to $74.94 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Iveco Group NV soared 17% to €13.56, and the Italian truck and bus maker said it is considering spinning off its defense business.
Henkel AG advanced 1.8% to €84.96 after the German consumer products company said it plans to sell its retailer brand business to an affiliate of First Quality Enterprises.
L'Oreal SA decreased 4% to €337.90 after the French cosmetics company reported weaker-than-expected fourth quarter sales.
Sanofi SA declined 0.4% to €103.68, and the French healthcare company announced a €2 billion stock buyback plan.
Danske Bank AS soared 7.3% to DKK 234.30 after the Danish bank reported strong fourth-quarter financial results.
Legal & General Group advanced 3.5% to 247.88 pence after the British life insurance company agreed to sell its U.S. insurance entity for $2.3 billion to Japan's Meiji Yasuda.
The U.S. entity comprises protection and pension risk transfer businesses.
Ashmore Group plc decreased 0.4% to 168.10 pence after the emerging markets-focused asset manager reported a 33% decrease in half-year profit.
- Bridgette Randall
- 07 Feb, 2025
- London
European markets meandered after trading near record highs in the previous session, and investors kept their focus on corporate results.
Benchmark indexes in Paris, Frankfurt, Milan, and London flatlined a day after the Bank of England lowered its key lending rate.
The Bank of England trimmed its bank rate by 25 basis points to 4.5%, and policymakers struggled to balance concerns to promote economic growth and stubborn services inflation.
Germany's industrial output declined monthly 2.4% in December, rebounding from a downwardly revised decline of 1.3% in the previous month.
On an annual basis, industrial production contracted 3.1%, accelerating from the 2.8% fall in the previous month, according to the monthly update released by Destatis.
In 2024, Germany's goods exports decreased 1% to €1.6 trillion, and imports fell 2.8% to €1.3 trillion, resulting in a goods trade surplus of €241.2 billion.
After a week of trading, the DAX index increased 2.6%, the CAC-40 advanced 2.4%, and the FTSE 100 index edged up 0.3%.
Europe Indexes and Yields
The DAX index increased by 0.08% to 21,919.94, the CAC-40 index declined 0.05% to 8,003.78, and the FTSE 100 index dropped by 0.14% to 8,714.65.
The yield on 10-year German bonds inched lower to 2.36%, French bonds decreased to 3.08%, the UK gilts moved down to 4.47%, and Italian bonds edged lower to 3.43%.
The euro increased to $1.04; the British pound was higher at $1.24; and the U.S. dollar was higher and traded at 90.62 Swiss cents.
Brent crude increased $0.65 to $74.94 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Iveco Group NV soared 17% to €13.56, and the Italian truck and bus maker said it is considering spinning off its defense business.
Henkel AG advanced 1.8% to €84.96 after the German consumer products company said it plans to sell its retailer brand business to an affiliate of First Quality Enterprises.
L'Oreal SA decreased 4% to €337.90 after the French cosmetics company reported weaker-than-expected fourth quarter sales.
Sanofi SA declined 0.4% to €103.68, and the French healthcare company announced a €2 billion stock buyback plan.
Danske Bank AS soared 7.3% to DKK 234.30 after the Danish bank reported strong fourth-quarter financial results.
Legal & General Group advanced 3.5% to 247.88 pence after the British life insurance company agreed to sell its U.S. insurance entity for $2.3 billion to Japan's Meiji Yasuda.
The U.S. entity comprises protection and pension risk transfer businesses.
Ashmore Group plc decreased 0.4% to 168.10 pence after the emerging markets-focused asset manager reported a 33% decrease in half-year profit.
- Akira Ito
- 07 Feb, 2025
- Tokyo
Stock market indexes in Tokyo trimmed weekly gains amid fears of a rate hike at the next policy meeting after household spending rose in December.
The Nikkei 225 stock average and the TOPIX decreased 0.4% in Friday's trading, and they advanced about 0.5% in the week.
Japan's household spending rose at a faster pace in December, increasing for the third month in a row amid rising food prices.
Household spending in December advanced an annual 2.7% in December, the first increase in five months, driven by higher spending for vehicles boosted by winter bonuses.
Despite the jump in household spending in December, the average monthly spending in 2024 declined 1.1% after adjusting for inflation to 300,243 yen, or about $1,967.
The monthly survey of spending by households of two or more is released by the Ministry of Internal Affairs and Communications.
Food spending, which accounts for the bulk of spending, declined 0.4%, the fifth annual fall in a row. Poor weather drove prices of rice to a record high.
Food expenses soared to 28.3% of total household spending and surged to the highest since record keeping began in 2000.
Spending for transportation and communications fell 4.1%, utilities declined 6.8%, but housing cost increases slowed to 15.8% from 18.7% in the previous month.
The latest household spending data supported the Bank of Japan's case for a virtuous cycle of rising prices and wages to support additional rate increases, and the yen strengthened to 151.78 against the U.S. dollar.
Japan Indexes and Stock Movers
The Nikkei 225 Stock Average declined 0.7% to 38,787.02, and the broader TOPIX fell 0.5% to 2,737.23.
Tokyo Electron Ltd. dropped 4.1% to ¥25,500.0 after the advanced semiconductor equipment company confirmed its expansion plans despite worries about intensifying competition and durability of industry growth.
Konica Minolta declined 8% to ¥561.0, and the electronic goods maker said revenue increased but profit dropped in the nine-month period ending in December.
The medical imaging company said revenue increased 3.5% to 831.8 billion, net loss expanded to 13.2 billion yen from 4.4 billion yen, and diluted loss per share increased to 27.09 yen from 8.37 yen a year ago.
The company reiterated its full-year revenue increase estimate of 2.4% to 1.1 trillion yen and zero profit and earnings per share.
- Akira Ito
- 07 Feb, 2025
- Tokyo
Stock market indexes in Tokyo trimmed weekly gains amid fears of a rate hike at the next policy meeting after household spending rose in December.
The Nikkei 225 stock average and the TOPIX decreased 0.4% in Friday's trading, and they advanced about 0.5% in the week.
Japan's household spending rose at a faster pace in December, increasing for the third month in a row amid rising food prices.
Household spending in December advanced an annual 2.7% in December, the first increase in five months, driven by higher spending for vehicles boosted by winter bonuses.
Despite the jump in household spending in December, the average monthly spending in 2024 declined 1.1% after adjusting for inflation to 300,243 yen, or about $1,967.
The monthly survey of spending by households of two or more is released by the Ministry of Internal Affairs and Communications.
Food spending, which accounts for the bulk of spending, declined 0.4%, the fifth annual fall in a row. Poor weather drove prices of rice to a record high.
Food expenses soared to 28.3% of total household spending and surged to the highest since record keeping began in 2000.
Spending for transportation and communications fell 4.1%, utilities declined 6.8%, but housing cost increases slowed to 15.8% from 18.7% in the previous month.
The latest household spending data supported the Bank of Japan's case for a virtuous cycle of rising prices and wages to support additional rate increases, and the yen strengthened to 151.78 against the U.S. dollar.
Japan Indexes and Stock Movers
The Nikkei 225 Stock Average declined 0.7% to 38,787.02, and the broader TOPIX fell 0.5% to 2,737.23.
Tokyo Electron Ltd. dropped 4.1% to ¥25,500.0 after the advanced semiconductor equipment company confirmed its expansion plans despite worries about intensifying competition and durability of industry growth.
Konica Minolta declined 8% to ¥561.0, and the electronic goods maker said revenue increased but profit dropped in the nine-month period ending in December.
The medical imaging company said revenue increased 3.5% to 831.8 billion, net loss expanded to 13.2 billion yen from 4.4 billion yen, and diluted loss per share increased to 27.09 yen from 8.37 yen a year ago.
The company reiterated its full-year revenue increase estimate of 2.4% to 1.1 trillion yen and zero profit and earnings per share.
- Li Chen
- 07 Feb, 2025
- Hong Kong
Stock market indexes in China and Hong Kong extended weekly gains following the sustained rally in tech stocks for the third day in a row.
The Hang Seng index gained 0.4%, and the CSI index advanced nearly 1% as investors awaited clarity on previously announced stimulus measures.
Tech stocks extended gains in the holiday-shortened week after investors returned from the weeklong Lunar New Year holidays.
Chinese electronic products and systems makers are likely to be big winners from the availability of artificial intelligence technology and frameworks from DeepSeek.
Mainland China investors bid up state-owned enterprises in the hopes that policymakers will announce additional measures to revive property market.
China Indexes and Stock Movers
The Hang Seng index increased 0.4% to 20,967.80, and the mainland-focused CSI 300 index rose 0.9% to 3,876.08.
Lenovo Group increased 5.7% to HK $12.16 in the hope that the personal computing equipment maker is likely to benefit from the availability of cheap artificial intelligence products from DeepSeek.
Xiaomo Corp. advanced 4.5% to HK $41.90 after the company announced the release of a new smartphone and electric vehicle.
Electric vehicle makers advanced following a surge in tech stocks.
Li Auto jumped 5.8% to HK $101.50, BYD gained 3.5% to HK $326.80, and Geely Automobile Holdings advanced 3.3% to HK $17.52.
- Li Chen
- 07 Feb, 2025
- Hong Kong
Stock market indexes in China and Hong Kong extended weekly gains following the sustained rally in tech stocks for the third day in a row.
The Hang Seng index gained 0.4%, and the CSI index advanced nearly 1% as investors awaited clarity on previously announced stimulus measures.
Tech stocks extended gains in the holiday-shortened week after investors returned from the weeklong Lunar New Year holidays.
Chinese electronic products and systems makers are likely to be big winners from the availability of artificial intelligence technology and frameworks from DeepSeek.
Mainland China investors bid up state-owned enterprises in the hopes that policymakers will announce additional measures to revive property market.
China Indexes and Stock Movers
The Hang Seng index increased 0.4% to 20,967.80, and the mainland-focused CSI 300 index rose 0.9% to 3,876.08.
Lenovo Group increased 5.7% to HK $12.16 in the hope that the personal computing equipment maker is likely to benefit from the availability of cheap artificial intelligence products from DeepSeek.
Xiaomo Corp. advanced 4.5% to HK $41.90 after the company announced the release of a new smartphone and electric vehicle.
Electric vehicle makers advanced following a surge in tech stocks.
Li Auto jumped 5.8% to HK $101.50, BYD gained 3.5% to HK $326.80, and Geely Automobile Holdings advanced 3.3% to HK $17.52.
- Arun Goswami
- 07 Feb, 2025
- Mumbai
Benchmark indexes in Mumbai trimmed weekly gains, and investors reviewed the latest earnings.
The rupee hovered near a record low amid elevated trade tensions, interest rate path uncertainties, and persistent outflows of foreign funds.
The Sensex index decreased by 0.07% to 78,005.97, and the Nifty index declined by 0.09% to 23,582.05.
On the Mumbai stock exchange, 22 stocks traded at their 52-week highs, and 46 stocks traded at their 52-week lows.
Stock Movers
Britannia Industries dropped 0.7% to ₹4,924.0, despite the food products maker reporting a nearly 5% increase in the December quarter.
LIC dropped 0.9% to ₹821.15 ahead of the life insurance company's quarterly results later in the day.
Mahindra & Mahindra gained 3.2% to ₹3,187.15 ahead of the release of fiscal third quarter results amid expectations of higher unit sales in its tractor and passenger car divisions.
Bharti Airtel Ltd. increased 4.7% to ₹1,696.15 after the wireless services provider reported a five-fold jump in its fiscal third quarter.
ITC Ltd. declined 1.8% to ₹433.0 after the diversified conglomerate reported a marginal increase in net income in the latest quarter.
Recent Earnings Movers
State Bank of India decreased 1.2% to ₹743.35 despite the financial services company reporting a 67% jump in its earnings in the December quarter.
Consolidated revenue increased to ₹167,853.6 crore from ₹153,071.6 crore, after-tax profit rose to ₹19,175.4 crore from ₹11,282.7 crore, and diluted earnings per share advanced to ₹21.12 from ₹12.40 a year ago.
Trent Ltd. increased 0.7% to ₹5,310 after the parent company of Zudio and Star Bazaar reported a 33% surge from a year ago in the December quarter revenue.
Consolidated revenue in the December quarter advanced to ₹4,715.6 crore from ₹3,547 crore, net income increased to ₹496.5 crore from ₹370.6 crore, and diluted earnings per share rose to ₹13.99 from ₹10.53 a year ago.
Bharti Airtel Limited jumped 4.4% to ₹1,690, and the telecommunications company reported a fivefold increase in earnings in the December quarter.
Consolidated revenue advanced to ₹45,599 crore from ₹38,339.3 crore, after-tax profit jumped to ₹16,134.6 crore from ₹2,876.4 crore, and diluted earnings per share rose to ₹24.65 from ₹4.17 a year ago.
Hero Motocorp Ltd. rose 0.7% to ₹4,258.25 after the two-wheeler maker reported a rise in revenue and net income in the December quarter.
Consolidated revenue advanced to ₹10,566.3 crore from ₹10,031.4 crore, net income increased to ₹1,108.3 crore from ₹1,091.1 crore, and diluted earnings per share rose to ₹55.31 from ₹54.59 a year ago.
ITC Ltd. fell 2.1% to ₹432 despite the diversified conglomerate reporting an 11% increase in the fiscal third quarter ending in December.
Consolidated revenue increased to ₹19,376.8 crore from ₹20,732.5 crore, after-tax profit rose to ₹5,638.3 crore from ₹5,078.4 crore, and diluted earnings per share advanced to ₹4.50 from ₹4.06 a year ago.
MRF Ltd. advanced 0.4% to ₹1,14,448.95 despite the tire maker reporting a 38% plunge in quarterly profit from a year ago.
Consolidated revenue in the December quarter increased to ₹7,098.9 crore from ₹6,240.1 crore, net income dropped to ₹315.5 crore from ₹509.7 crore, and diluted earnings per share fell to ₹743.80 from ₹1,201.81 a year ago.
Cochin Shipyard Ltd. decreased 3% to ₹1,370.95 after the shipbuilding & repair yard operator reported a 28% drop in profit in the December quarter from a year ago.
Consolidated revenue decreased to ₹1,194.4 crore from ₹1,244.3 crore, after-tax profit fell to ₹177 crore from ₹244.4 crore, and diluted earnings per share dropped to ₹6.73 from ₹9.29 a year ago.
NCC Limited dropped 12% to ₹209.20 after the infrastructure development company reported a slight increase in revenue and an 11% decline in profit in the December quarter.
Consolidated revenue increased to ₹5,382.9 crore from ₹5,247.8 crore, net income fell to ₹205 crore from ₹231 crore, and diluted earnings per share decreased to ₹3.08 from ₹3.51 a year ago.
- Arun Goswami
- 07 Feb, 2025
- Mumbai
Benchmark indexes in Mumbai trimmed weekly gains, and investors reviewed the latest earnings.
The rupee hovered near a record low amid elevated trade tensions, interest rate path uncertainties, and persistent outflows of foreign funds.
The Sensex index decreased by 0.07% to 78,005.97, and the Nifty index declined by 0.09% to 23,582.05.
On the Mumbai stock exchange, 22 stocks traded at their 52-week highs, and 46 stocks traded at their 52-week lows.
Stock Movers
Britannia Industries dropped 0.7% to ₹4,924.0, despite the food products maker reporting a nearly 5% increase in the December quarter.
LIC dropped 0.9% to ₹821.15 ahead of the life insurance company's quarterly results later in the day.
Mahindra & Mahindra gained 3.2% to ₹3,187.15 ahead of the release of fiscal third quarter results amid expectations of higher unit sales in its tractor and passenger car divisions.
Bharti Airtel Ltd. increased 4.7% to ₹1,696.15 after the wireless services provider reported a five-fold jump in its fiscal third quarter.
ITC Ltd. declined 1.8% to ₹433.0 after the diversified conglomerate reported a marginal increase in net income in the latest quarter.
Recent Earnings Movers
State Bank of India decreased 1.2% to ₹743.35 despite the financial services company reporting a 67% jump in its earnings in the December quarter.
Consolidated revenue increased to ₹167,853.6 crore from ₹153,071.6 crore, after-tax profit rose to ₹19,175.4 crore from ₹11,282.7 crore, and diluted earnings per share advanced to ₹21.12 from ₹12.40 a year ago.
Trent Ltd. increased 0.7% to ₹5,310 after the parent company of Zudio and Star Bazaar reported a 33% surge from a year ago in the December quarter revenue.
Consolidated revenue in the December quarter advanced to ₹4,715.6 crore from ₹3,547 crore, net income increased to ₹496.5 crore from ₹370.6 crore, and diluted earnings per share rose to ₹13.99 from ₹10.53 a year ago.
Bharti Airtel Limited jumped 4.4% to ₹1,690, and the telecommunications company reported a fivefold increase in earnings in the December quarter.
Consolidated revenue advanced to ₹45,599 crore from ₹38,339.3 crore, after-tax profit jumped to ₹16,134.6 crore from ₹2,876.4 crore, and diluted earnings per share rose to ₹24.65 from ₹4.17 a year ago.
Hero Motocorp Ltd. rose 0.7% to ₹4,258.25 after the two-wheeler maker reported a rise in revenue and net income in the December quarter.
Consolidated revenue advanced to ₹10,566.3 crore from ₹10,031.4 crore, net income increased to ₹1,108.3 crore from ₹1,091.1 crore, and diluted earnings per share rose to ₹55.31 from ₹54.59 a year ago.
ITC Ltd. fell 2.1% to ₹432 despite the diversified conglomerate reporting an 11% increase in the fiscal third quarter ending in December.
Consolidated revenue increased to ₹19,376.8 crore from ₹20,732.5 crore, after-tax profit rose to ₹5,638.3 crore from ₹5,078.4 crore, and diluted earnings per share advanced to ₹4.50 from ₹4.06 a year ago.
MRF Ltd. advanced 0.4% to ₹1,14,448.95 despite the tire maker reporting a 38% plunge in quarterly profit from a year ago.
Consolidated revenue in the December quarter increased to ₹7,098.9 crore from ₹6,240.1 crore, net income dropped to ₹315.5 crore from ₹509.7 crore, and diluted earnings per share fell to ₹743.80 from ₹1,201.81 a year ago.
Cochin Shipyard Ltd. decreased 3% to ₹1,370.95 after the shipbuilding & repair yard operator reported a 28% drop in profit in the December quarter from a year ago.
Consolidated revenue decreased to ₹1,194.4 crore from ₹1,244.3 crore, after-tax profit fell to ₹177 crore from ₹244.4 crore, and diluted earnings per share dropped to ₹6.73 from ₹9.29 a year ago.
NCC Limited dropped 12% to ₹209.20 after the infrastructure development company reported a slight increase in revenue and an 11% decline in profit in the December quarter.
Consolidated revenue increased to ₹5,382.9 crore from ₹5,247.8 crore, net income fell to ₹205 crore from ₹231 crore, and diluted earnings per share decreased to ₹3.08 from ₹3.51 a year ago.
- Alexander Garcia
- 06 Feb, 2025
- Miami
Wall Street indexes extended the rally to the third consecutive session, and investors overlooked tariff-caused trade tensions.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.3% as more than 70 companies released earnings since the closure of regular trading hours on Wednesday.
Investors reacted to announcements from Ford Motor Company, Honeywell International, Qualcomm, Arm Holdings, Costco, T. Rowe Price, Cognizant, and Peloton.
Despite the mild rebound, investor confidence is shaken in the incoming presidential administration after reversing several tariff measures announced just a week ago.
The Trump administration appears to score political victories and force foreign governments to meet its demands using tariffs as a negotiating tool.
However, Trump was forced to cave in and "delay" imposing tariffs on goods from Mexico and Canada with little to show in return.
The U.S. Postal Service was also forced to halt processing inbound shipments from China and Hong Kong, only to suspend the block hours later.
Moreover, higher tariffs on foreign goods are stoking inflation, forcing the Federal Reserve to hold higher rates for longer.
U.S. Stock Movers
Arm Holdings PLC decreased 3.9% to $166.50 despite the advanced semiconductor chip designers reporting better-than-expected revenue and adjusted earnings in the fiscal third quarter.
Qualcomm dropped 4.5% to $168.0 despite the advanced chipmaker reporting better-than-expected revenue and earnings in the fiscal first quarter.
Ford Motor declined 5.5% to $9.47 after the passenger car and vehicle maker estimated a difficult 2025 amid rising tariffs on parts shipped from foreign locations.
Honeywell International Inc. declined 3.5% to $215.49 after the automation company's revenue and earnings outlook fell short of some investors expectations.
The company estimated fiscal year revenue between $39.6 billion and $40.6 billion and earnings per share between $10.10 and $10.50.
European Markets Hovered Near Record Highs
Stock market indexes across Europe advanced, and investors reviewed the latest batch of corporate results.
Benchmark indexes in Frankfurt and London hovered near record highs amid optimism about earnings, despite a weak outlook for growth in economic activities and exports.
Investors shifted their focus to corporate results and reviewed the latest earnings from 90 companies, including Volvo Cars, Arcelor Mittal, Siemens Healthineers, Societe Generale, ING, and Maersk.
World markets have experienced heightened volatility after the newly appointed U.S. presidential administration announced and then dropped the threat of tariffs on Mexico and Canada and made a U-turn on trade restrictions on China.
The U.S. trade policy uncertainty weighed on the market sentiment, and investors are bracing for a possible list of trade restrictions and tariffs on goods shipped from the European Union.
Crude oil prices eased for the second day in a row amid a supply glut and a lack of demand growth, and gold hovered near record highs as investors feared Trump's tariff war would support higher inflation.
BoE Lowered Rates and Retained Gradual Bias
The Bank of England lowered its benchmark rate by 25 basis points to 4.5%, and the central bank cut the rate for the third time since the rate-cutting campaign started in August last year.
The central bank reiterated its goal of reducing rates gradually as the need to control stubborn service inflation outweighs the mounting economic growth worries.
German Factory Orders Rebounded In December but Dropped In 2024
On the economic front, German factory orders rebounded 6.9% from the previous month in December, according to the latest data from Destatis, the federal statistical office.
A 55% surge in transportation orders lifted the overall orders, and orders rebounded from a downwardly revised 5.2% decline in November.
For the full year 2024, seasonally adjusted factory orders decreased 3.0%.
Europe Indexes and Yields
The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09.
The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.
The euro decreased to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.51 Swiss cents.
Brent crude increased $0.47 to $75.08 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
A.P. Moeller Maersk soared 9.2% to DKK 11,885.0 after the Danish shipping company and port terminal operator reported better-than-expected fourth quarter results.
ArcelorMittal SA jumped 1.7% to €24.40 after the second-largest steel company's fourth quarter results surpassed market expectations.
The losses in the quarter shrank to $390 million from $2.9 billion, and steel production advanced to 14 million tons from 13.7 million tons a year ago, respectively.
In the full year 2024, the company's net income advanced to $1.3 billion from $919 million a year ago.
Volvo Car AB dropped 9.2% to 21.50 krona after the vehicle maker reported a decrease in operating profit in the fourth quarter, and the company estimated turbulent 2025 amid market uncertainties.
Siemens Healthineers AG jumped 5.3% to €57.16 after the German medical equipment company's fiscal first quarter sales surpassed market expectations.
In addition, the company reiterated its fiscal 2025 outlook.
ING Groep NV declined 2.9% to €15.51 after the Dutch bank said annual total income in 2025 is likely to be flat compared to the previous year.
Société Générale SA surged 9.2% to €33.79 after the French bank said fourth-quarter profit doubled on higher revenues.
Pernod Ricard SA advanced 2.7% to €104.90 despite the French wine and spirit maker lowering its outlook for the current fiscal year.
Japan Rally Extends to Third Day
Stock market indexes in Tokyo advanced for the third day in a row, tracking gains in tech stocks on Wall Street.
The Nikkei 225 stock average and the TOPIX advanced between 0.3% and 0.6% as investors shifted their attention away from tariff threats to corporate earnings.
Investors reacted to the latest batch of earnings, including results from Toyota Motor, Renesas Electronics, Tokyo Electron, Nippon Electric Glass, Nomura Holdings, and Yamaha.
In addition, Honda and Nissan were in focus amid reports that the two companies may walk away from the merger deal after Honda proposed to acquire Nissan and operate as one of its subsidiaries.
Despite the recent gains in benchmark indexes, investors were cautious amid worries of possible new trade restrictions in the U.S., after the newly appointed presidential administration slapped additional 10% tariffs on goods shipped from China and Hong Kong.
Japan Indexes and Stocks; Marubeni, Nippon Electric Glass, Renesas Electronics In Focus
The Nikkei 225 Stock Average increased 0.6% to 39,066.53, and the TOPIX advanced 0.3% to 2,752.20.
Honda Motor declined 4% to ¥1,440.0, and Nissan Motor jumped 7% to ¥415.10 after the two companies ended their merger talks, and
Honda instead proposed to acquire Nissan.
Renesas Electronics jumped 12.6% to ¥2,305.50 after the advanced semiconductor chipmaker reported full-year 2024 results.
Consolidated revenue decreased 8.2% to 1.4 trillion yen, and profit plunged 35% to 219.4 billion yen from 337.3 billion yen.
This was mainly attributable to a decrease in revenue from the industrial, infrastructure, and IoT business driven by weakening demand, although revenue increase in the automotive business was driven by weakening yen and channel inventory expansion.
Nippon Electric Glass soared 9% to ¥3,702.0 after the company announced a stock repurchase plan.
The company said it plans to acquire 7 million common shares, or 8.7% of total outstanding shares, for about 20 billion yen, between February 6 and December 23, 2025.
Marubeni Corp. increased 4% to ¥2,399.50, and the diversified conglomerate reported better-than-expected results in the fiscal third quarter ending in December.
Revenue increased 9% to 1.83 trillion yen, and net income advanced 56% to 187.06 billion yen.
The company raised its estimate for annual dividends to 95 yen from 90 yen and the full-year net income estimate to 500 billion yen from the previous estimate of 480 billion yen.
The company announced a stock buyback program worth up to 30 billion yen or 30 million shares between February 6 and June 30.
U.S. Trade Policy Uncertainty Weighed On Market Sentiment In China
Stock market indexes in China and Hong Kong rebounded, and investors remained cautious amid U.S. trade policy uncertainty.
The Hang Seng index increased 0.5%, and the CSI 300 index advanced 0.8%, and investors pinned their hopes that trade tensions between the U.S. and China will ease in the months ahead.
Despite the loud rhetoric from the Trump administration and an increase in U.S. tariffs, China's exports have continued to rise over the last eight years, including in the first 4-year term of Donald Trump.
However, markets are bracing for heightened volatility amid policy reversal and chaotic U.S. presidential administration.
The U.S. Postal Service reversed its plans to halt processing goods shipped from China and Hong Kong only hours after implementing it.
The move will avoid duty on Chinese goods worth less than $800 under the "de minimis" rule, which will continue the flow of cheap goods sourced from online markets operated by Chinese e-commerce companies.
Nearly half of all goods entering the U.S. and processed under the de minimis policy originated from China and Hong Kong, according to a U.S. Congressional Research Service report released in June 2023.
About $245 billion worth of Chinese goods were shipped annually to the U.S., and about 3 million packages arrive daily to the U.S. from China and Hong Kong, according to estimates from industry sources.
Despite the removal of the temporary block on processing inbound shipments from China, tensions remained high, and investors are bracing for additional trade barriers for Chinese goods shipped via Mexico, Vietnam, and other third countries.
China Indexes and Stock Movers
The Hang Seng index advanced 0.5% to 20,700.30, and the CSI 300 index gained 0.8% to 3,825.81.
E-commerce companies were in focus after the U.S. Postal Service made a U-turn on processing inbound shipments from China and Hong Kong.
Alibaba Group increased 0.2% to $97.75, Meituan decreased 0.2% to HK $149.20, JD.com added 0.3% to HK $157.0, and Tencent Holdings declined 0.3% to HK $416.80.
China Literature Ltd increased 8.1% to HK $29.15, and the Tencent-backed e-book seller extended this year's gains to 19%.
Semiconductor stocks advanced in the hopes that Chinese companies will find a way around the U.S. sanctions to continue to improve their production capabilities.
Hua Hong Semiconductor advanced 5.2% to HK $26.55, and SMIC advanced 5.5% to HK $47.25.
- Alexander Garcia
- 06 Feb, 2025
- Miami
Wall Street indexes extended the rally to the third consecutive session, and investors overlooked tariff-caused trade tensions.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.3% as more than 70 companies released earnings since the closure of regular trading hours on Wednesday.
Investors reacted to announcements from Ford Motor Company, Honeywell International, Qualcomm, Arm Holdings, Costco, T. Rowe Price, Cognizant, and Peloton.
Despite the mild rebound, investor confidence is shaken in the incoming presidential administration after reversing several tariff measures announced just a week ago.
The Trump administration appears to score political victories and force foreign governments to meet its demands using tariffs as a negotiating tool.
However, Trump was forced to cave in and "delay" imposing tariffs on goods from Mexico and Canada with little to show in return.
The U.S. Postal Service was also forced to halt processing inbound shipments from China and Hong Kong, only to suspend the block hours later.
Moreover, higher tariffs on foreign goods are stoking inflation, forcing the Federal Reserve to hold higher rates for longer.
U.S. Stock Movers
Arm Holdings PLC decreased 3.9% to $166.50 despite the advanced semiconductor chip designers reporting better-than-expected revenue and adjusted earnings in the fiscal third quarter.
Qualcomm dropped 4.5% to $168.0 despite the advanced chipmaker reporting better-than-expected revenue and earnings in the fiscal first quarter.
Ford Motor declined 5.5% to $9.47 after the passenger car and vehicle maker estimated a difficult 2025 amid rising tariffs on parts shipped from foreign locations.
Honeywell International Inc. declined 3.5% to $215.49 after the automation company's revenue and earnings outlook fell short of some investors expectations.
The company estimated fiscal year revenue between $39.6 billion and $40.6 billion and earnings per share between $10.10 and $10.50.
European Markets Hovered Near Record Highs
Stock market indexes across Europe advanced, and investors reviewed the latest batch of corporate results.
Benchmark indexes in Frankfurt and London hovered near record highs amid optimism about earnings, despite a weak outlook for growth in economic activities and exports.
Investors shifted their focus to corporate results and reviewed the latest earnings from 90 companies, including Volvo Cars, Arcelor Mittal, Siemens Healthineers, Societe Generale, ING, and Maersk.
World markets have experienced heightened volatility after the newly appointed U.S. presidential administration announced and then dropped the threat of tariffs on Mexico and Canada and made a U-turn on trade restrictions on China.
The U.S. trade policy uncertainty weighed on the market sentiment, and investors are bracing for a possible list of trade restrictions and tariffs on goods shipped from the European Union.
Crude oil prices eased for the second day in a row amid a supply glut and a lack of demand growth, and gold hovered near record highs as investors feared Trump's tariff war would support higher inflation.
BoE Lowered Rates and Retained Gradual Bias
The Bank of England lowered its benchmark rate by 25 basis points to 4.5%, and the central bank cut the rate for the third time since the rate-cutting campaign started in August last year.
The central bank reiterated its goal of reducing rates gradually as the need to control stubborn service inflation outweighs the mounting economic growth worries.
German Factory Orders Rebounded In December but Dropped In 2024
On the economic front, German factory orders rebounded 6.9% from the previous month in December, according to the latest data from Destatis, the federal statistical office.
A 55% surge in transportation orders lifted the overall orders, and orders rebounded from a downwardly revised 5.2% decline in November.
For the full year 2024, seasonally adjusted factory orders decreased 3.0%.
Europe Indexes and Yields
The DAX index increased by 0.70% to 21,737.00, the CAC-40 index rose 0.69% to 7,946.14, and the FTSE 100 index advanced by 1.13% to 8,721.09.
The yield on 10-year German bonds inched higher to 2.37%, French bonds increased to 3.09%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.45%.
The euro decreased to $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.51 Swiss cents.
Brent crude increased $0.47 to $75.08 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
A.P. Moeller Maersk soared 9.2% to DKK 11,885.0 after the Danish shipping company and port terminal operator reported better-than-expected fourth quarter results.
ArcelorMittal SA jumped 1.7% to €24.40 after the second-largest steel company's fourth quarter results surpassed market expectations.
The losses in the quarter shrank to $390 million from $2.9 billion, and steel production advanced to 14 million tons from 13.7 million tons a year ago, respectively.
In the full year 2024, the company's net income advanced to $1.3 billion from $919 million a year ago.
Volvo Car AB dropped 9.2% to 21.50 krona after the vehicle maker reported a decrease in operating profit in the fourth quarter, and the company estimated turbulent 2025 amid market uncertainties.
Siemens Healthineers AG jumped 5.3% to €57.16 after the German medical equipment company's fiscal first quarter sales surpassed market expectations.
In addition, the company reiterated its fiscal 2025 outlook.
ING Groep NV declined 2.9% to €15.51 after the Dutch bank said annual total income in 2025 is likely to be flat compared to the previous year.
Société Générale SA surged 9.2% to €33.79 after the French bank said fourth-quarter profit doubled on higher revenues.
Pernod Ricard SA advanced 2.7% to €104.90 despite the French wine and spirit maker lowering its outlook for the current fiscal year.
Japan Rally Extends to Third Day
Stock market indexes in Tokyo advanced for the third day in a row, tracking gains in tech stocks on Wall Street.
The Nikkei 225 stock average and the TOPIX advanced between 0.3% and 0.6% as investors shifted their attention away from tariff threats to corporate earnings.
Investors reacted to the latest batch of earnings, including results from Toyota Motor, Renesas Electronics, Tokyo Electron, Nippon Electric Glass, Nomura Holdings, and Yamaha.
In addition, Honda and Nissan were in focus amid reports that the two companies may walk away from the merger deal after Honda proposed to acquire Nissan and operate as one of its subsidiaries.
Despite the recent gains in benchmark indexes, investors were cautious amid worries of possible new trade restrictions in the U.S., after the newly appointed presidential administration slapped additional 10% tariffs on goods shipped from China and Hong Kong.
Japan Indexes and Stocks; Marubeni, Nippon Electric Glass, Renesas Electronics In Focus
The Nikkei 225 Stock Average increased 0.6% to 39,066.53, and the TOPIX advanced 0.3% to 2,752.20.
Honda Motor declined 4% to ¥1,440.0, and Nissan Motor jumped 7% to ¥415.10 after the two companies ended their merger talks, and
Honda instead proposed to acquire Nissan.
Renesas Electronics jumped 12.6% to ¥2,305.50 after the advanced semiconductor chipmaker reported full-year 2024 results.
Consolidated revenue decreased 8.2% to 1.4 trillion yen, and profit plunged 35% to 219.4 billion yen from 337.3 billion yen.
This was mainly attributable to a decrease in revenue from the industrial, infrastructure, and IoT business driven by weakening demand, although revenue increase in the automotive business was driven by weakening yen and channel inventory expansion.
Nippon Electric Glass soared 9% to ¥3,702.0 after the company announced a stock repurchase plan.
The company said it plans to acquire 7 million common shares, or 8.7% of total outstanding shares, for about 20 billion yen, between February 6 and December 23, 2025.
Marubeni Corp. increased 4% to ¥2,399.50, and the diversified conglomerate reported better-than-expected results in the fiscal third quarter ending in December.
Revenue increased 9% to 1.83 trillion yen, and net income advanced 56% to 187.06 billion yen.
The company raised its estimate for annual dividends to 95 yen from 90 yen and the full-year net income estimate to 500 billion yen from the previous estimate of 480 billion yen.
The company announced a stock buyback program worth up to 30 billion yen or 30 million shares between February 6 and June 30.
U.S. Trade Policy Uncertainty Weighed On Market Sentiment In China
Stock market indexes in China and Hong Kong rebounded, and investors remained cautious amid U.S. trade policy uncertainty.
The Hang Seng index increased 0.5%, and the CSI 300 index advanced 0.8%, and investors pinned their hopes that trade tensions between the U.S. and China will ease in the months ahead.
Despite the loud rhetoric from the Trump administration and an increase in U.S. tariffs, China's exports have continued to rise over the last eight years, including in the first 4-year term of Donald Trump.
However, markets are bracing for heightened volatility amid policy reversal and chaotic U.S. presidential administration.
The U.S. Postal Service reversed its plans to halt processing goods shipped from China and Hong Kong only hours after implementing it.
The move will avoid duty on Chinese goods worth less than $800 under the "de minimis" rule, which will continue the flow of cheap goods sourced from online markets operated by Chinese e-commerce companies.
Nearly half of all goods entering the U.S. and processed under the de minimis policy originated from China and Hong Kong, according to a U.S. Congressional Research Service report released in June 2023.
About $245 billion worth of Chinese goods were shipped annually to the U.S., and about 3 million packages arrive daily to the U.S. from China and Hong Kong, according to estimates from industry sources.
Despite the removal of the temporary block on processing inbound shipments from China, tensions remained high, and investors are bracing for additional trade barriers for Chinese goods shipped via Mexico, Vietnam, and other third countries.
China Indexes and Stock Movers
The Hang Seng index advanced 0.5% to 20,700.30, and the CSI 300 index gained 0.8% to 3,825.81.
E-commerce companies were in focus after the U.S. Postal Service made a U-turn on processing inbound shipments from China and Hong Kong.
Alibaba Group increased 0.2% to $97.75, Meituan decreased 0.2% to HK $149.20, JD.com added 0.3% to HK $157.0, and Tencent Holdings declined 0.3% to HK $416.80.
China Literature Ltd increased 8.1% to HK $29.15, and the Tencent-backed e-book seller extended this year's gains to 19%.
Semiconductor stocks advanced in the hopes that Chinese companies will find a way around the U.S. sanctions to continue to improve their production capabilities.
Hua Hong Semiconductor advanced 5.2% to HK $26.55, and SMIC advanced 5.5% to HK $47.25.